THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

WOLF BLITZER, CNN HOST: I'm Wolf Blitzer in for Piers Morgan. We have an update on tonight's Wisconsin recall vote. CNN projects that Governor Scott Walker has won. He's the Republican, the lieutenant governor, Rebecca Kleefisch also has won. She's a Republican as well.

Gloria Borger is joining us now. Gloria, closer than some suggested, but a clear and decisive win for the Republicans.

GLORIA BORGER, CNN CHIEF POLITICAL ANALYST: Yes, a decisive win for the Republican Party in this state. I think Republicans are thrilled with it because it shows that when they organize and when they spend money, they can outmaneuver labor. This was a big test for the Democrats and for the labor movement in particular. Union households came out strong, but not strong enough to keep back Scott Walker.

BLITZER: The exit polls show that President Obama is still clearly ahead of Mitt Romney looking ahead to November. But what lessons should we take from tonight's Republican win in this recall election looking ahead to November?

BORGER: Yes, you know, I think if you are a Democrat, you take a look at these numbers, you say gee, President Obama is still up 11 points in the state by those who voted. The voters who voted today still believe that he is better able to help the middle class and manage the economy.

But if you are a Republican and you look at the state of Wisconsin, which has not been won by a Republican since 1988, you take a look at these numbers and you say, you know what, when we organize, when we outspend the Democrats, when we have a good grassroots organization that can match the Democrats' grassroots organization, then we have a possibility of winning in the state of Wisconsin. So they are going to be very happy with these results, Wolf.

BLITZER: A good night for the Republicans in Wisconsin. Gloria, thanks very much. I'm Wolf Blitzer in Washington. "PIERS MORGAN TONIGHT" starts right now.

PIERS MORGAN, CNN HOST: Tonight, a celebration fit for a queen. Queen Elizabeth marks 60 years on the throne. William and Kate, Charles and Camilla join in the celebrations along with millions of Britons and countless more around the globe. Tonight I'll have all the highlights and some pulls (ph) to the palace, crowds and parties. The royal event of a lifetime, the Queen's Diamond Jubilee, this is a special PIERS MORGAN TONIGHT. (MUSIC PLAYING)

MORGAN: Good evening. I'm at Buckingham Palace, where the official celebration's winding down, but the unofficial parties will be rocking well into the night. This is, after all, a day that we Britons have been waiting 60 years to see, the Diamond Jubilee of Her Majesty the Queen.

And nothing can put a damper on festivities, not even the typically English weather nor the Duke of Edinburgh, who was hospitalized on Monday and unfortunately missed half of the celebration.

Tonight, though, we have all the must-see moments.

(BEGIN VIDEO CLIP)

(MUSIC PLAYING)

(END VIDEO CLIP)

MORGAN: Welcome to our viewers from around the world. You're watching one of the most extraordinary days in the history of the Royal Family. I'm Piers Morgan.

BROOKE BALDWIN, CNN ANCHOR: Good to see you from London. I'm Brooke Baldwin.

MORGAN: Welcome to London, one of the world's most famous landmarks, Buckingham Palace, a marvelous celebration honoring Queen Elizabeth II's 60 years on the throne. Minutes from now, Her Majesty will leave Parliament in a carriage procession and end up on the balcony of Buckingham Palace for a magnificent and historic moment.

Now this is my hometown. So let me guide you through.

BALDWIN: Go for it, Morgan.

MORGAN: All right, Baldwin, but It all begins in Parliament Square. We have the Houses of Parliament, of course, and Big Ben, and the procession will then move up to Trafalgar Square and from Trafalgar Square, we have Nelson's Column (ph). It will come under Admiralty Arch, into the mall and right up to Buckingham Palace for what will be remarkable scenes right behind us just here.

And already you can feel the crowds building, they are expecting up to a million people in the streets and we've been seeing a procession of bands and --

BALDWIN: Can you hear that?

MORGAN: -- guards in particular -- I can hear it now, actually.

(MUSIC PLAYING)

RICHARD QUEST, CNN HOST: Inside Westminster Hall, there is the Queen, having had the loyal salute and the national anthem. And so comes to an end the lunch part of the proceedings. Very shortly, the Queen will now be leaving, along with other members of the royal family and will be joining, of course, the carriage procession.

Outside Westminster Hall at this moment, the Sovereign's Escort is forming, along with all the other members of the household cavalry. This is what Britain does best. What you are seeing is now is the King's troop, the Royal Horse Artillery, who are lining up on Horse Guard Parade, where they will be firing the gun salute.

The Queen is now leaving with, of course, the Sovereign Stick in front.

MORGAN: Now this is exciting. This is verging on historic. We've been joined by the great, legendary newsman, Sir David Frost. Welcome.

BALDWIN: Welcome.

SIR DAVID FROST, JOURNALIST: Bless you. Glad to be here.

MORGAN: Lord Lloyd Weber -- and Lord Webber, who is the mastermind of part of the concert last night, welcome.

LORD LLOYD ANDREW WEBBER, COMPOSER: Thank you.

MORGAN: My good lord, and Dickie Arbiter, who should be either a knight or a lord, but has so far been cruelly overlooked after years of service to the very building behind us at Buckingham Palace.

Welcome to you all.

So, David, put into context what this is all about. When people say why should we care that the Queen is having her 60th anniversary celebration, what do you say?

FROST: Well, the first thing is it emerges very quickly that people do care. It may be difficult sometimes to explain exactly what it is, but you suddenly see people really do care. And in fact, when they go to places people care and they gather and they gather here, so that they really do care.

Now what is it? It's -- because on the one hand, people want to see the glamor of palaces and so on. On the other hand, journalists say it is important that we get across the fact that The Royals are ordinary folk. Well, people want them to be extraordinary and ordinary, so it's quite difficult.

(CROSSTALK)

MORGAN: Brooke?

BALDWIN: (Inaudible) on the carriage. We have just learned and hopefully this is a good sign of things to come weather wise, s that we have learned the 1902 state landau will be used so that is a good sign, meaning that it will not -- at least they're not hoping that the rain will not fall down on the Queen. Richard Quest, what more do you know about this breaking carriage news?

(LAUGHTER)

UNIDENTIFIED MALE: Yes.

QUEST: Well, we have been going backwards and forwards. Would it be the Australian coach from 1988 or would it be the 1902 Edward VII state landau? We now know even though it is raining, we will get the first umbrellas.

As you can see from the lining up outside of New Palace Yard, they are going to use the 1902 Landau unless they change at the last minute, which means all the people, you, me, everybody else, we are going to get a spectacular view of the procession.

MORGAN: Do you know, even as we said that they were going for the open-top carriage, the rain suddenly got heavier, which shows you, Dickie, (inaudible), organizing these things must be a hellish nightmare. I mean, just now, as we said, they're going for the open top, down comes the rain.

DICKIE ARBITER, FORMER BPALACE SPOKESMAN: Well, it is one of those nightmares you can't predict. I remember years ago when the Queen used to ride in troop into color, it rained cats and dogs overnight. They almost thought of calling it off; they didn't.

The sun came out for trooping. And by the time the Queen got down and back to Buckingham Palace, the heavens opened. There's a marvelous picture of her sitting astride Vernees (ph), in the center gateway with her head sort of crunched over because the rain is just lashing down.

MORGAN: But (inaudible) before that, and I want to talk to Andrew about last night's concert, which was an credible extravaganza, ending with madness on the roof and all sorts of pyrotechnics and stuff. You were involved in this record (ph) called, "Sing," which was the charity record that came out for the Jubilee. Tell me about that.

WEBBER: Well, that's the official song, which I have written with English radical (ph), Gary Barlow, and it was great last night because we wanted to celebrate one (inaudible) on it.

(LAUGHTER)

WEBBER: -- is --

MORGAN: That's all right, my good lord (ph).

WEBBER: The one thing I wanted to do was to celebrate her involvement with the commonwealth, because I think in a way, that is the unsaid thing that really, you know, in a multi-cultural society like Britain today, I think it is the fact that she kept the commonwealth together in the ways that she has for 60 years. It's the thing that she'll be most remembered for. So we wanted to try and be as inclusive as we possibly could.

BALDWIN: African (inaudible) choir --

WEBBER: -- we -- you name it, we had aborigines, we had the --

BALDWIN: Prince Harry on the tambourine.

WEBBER: Harry on the tambourine, very moving performance, if I may say so.

MORGAN: And what was it like, Andrew, (inaudible), you are on the stage at the end when everyone came out.

BALDWIN: What did that feel like?

MORGAN: The Queen and Prince Charles made that great speech, what did it feel like to be there?

WEBBER: Oh, it was fantastic. But do you know, the funny (inaudible) thing that I rather enjoyed the most was at the very beginning when this was not shown on television but when I went out with Garrett Pallone (ph), who directed the choir, and we rehearsed the whole audience.

That was fun because something you feel you're not completely on duty but yet there's this huge side and the blister (ph) of the people down the mall, amazing.

BALDWIN: Here she is back to some more live pictures. This is the Queen, again, walking solo without her husband, Prince Philip, because he is in hospital because of his bladder infection.

It looks like this luncheon is over and she is walking outside and the big moment we are waiting for, despite the rain we may have been hearing on our set roof is the fact she will be taking this open carriage, the state landau, which the last time we saw this particular carriage publicly was when we saw William and Kate heading from the abbey --

(CROSSTALK)

MORGAN: So it's a very famous carriage and the fact that they've opted (inaudible) does mean they're pretty confident about the weather.

(CROSSTALK)

BALDWIN: -- the Queen be holding an umbrella in such a carriage?

MORGAN: Oh, they'll have a gilt-edged umbrella, I would imagine.

Dickie, you would know the answer to this.

ARBITER: She would have a transparent umbrella. If it is just a minute drizzle, then it will be a transparent umbrella.

What is interesting, alas, Prince Philip is not here, do you know he was actually carriage driving yesterday morning.

MORGAN: Was he really?

ARBITER: He was actually carriage driving --

MORGAN: At the age of 90?

ARBITER: At the age of 90, 91 on Sunday. So there must have been concern to take him to hospital after that.

MORGAN: (Inaudible), David, I mean, talk to me about Prince Philip. He is the man who is not here today, but what an amazing rock he has been to the Queen.

FROST: An incredible rock, and she has recently said once or twice more clearly than ever -- and it -- she -- he has been incredible because he has had very -- it is arguably one of the most difficult roles in the world. How you stay a consort, as it were, and yet you stay respected as well.

MORGAN: (Inaudible) the Queen now getting into the landau carriage. Let's watch a bit this because this is a piece of history.

BALDWIN: So now you can see the Queen and because her husband is not well, she is now being joined -- this is a bit of last-minute change this morning. She is now joined by her son, Prince Charles, and his wife, Camilla, and it will no longer be this three-carriage procession, it will be two.

So this first carriage you see here; the second carriage will be Prince Harry, it will be William and Catherine.

And so they will begin this procession which will take them past Trafalgar Square, which is essentially where the massive crowd is that will ultimately be opened up and they will be able to walk along the mall. But before they do, she goes under Admiralty Arch, up the mall and up here to Buckingham Palace.

MORGAN: Next, London celebrates the Diamond Jubilee of Her Majesty the Queen. I have the highlights of the day the Britons have been waiting 60 years to see.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

MORGAN: You're watching live pictures of the Queen on her Diamond Jubilee coming up Whitehall from Parliament Square in London to Trafalgar Square, just past the prime minister's residence, Number 10 Downing Street. And she's in the open-top carriage.

The weather has held on just long enough for Her Majesty, which she'll be thrilled about. She has a household cavalry in the front, a really spectacular sight.

And (Inaudible) you just lost a bet on this. So David Frost, in all your years of watching The Royals, there's something very magical about this weekend I'm detecting.

FROST: Yes, there is, and I think it's something to do also with the age factor, there's this love for the Queen and there's the same feeling that, at their advanced age, which they're not showing at all at the moment, that there may not quite be a weekend like this ever again with this family.

MORGAN: What is the magic of the Queen? Why is she so revered and not just in this country but around the world?

WEBBER: I think she represents something that is constant in a changing world.

BALDWIN: Stability.

WEBBER: I think it is that. And I think that the fact that we that know her values are extraordinary. When she gave that speech at the United Nations, was it two or three years ago? I had the great fortune to have sat next to her when she was talking about what was going on with the speech at a lunch.

And everything was from here, from the heart, not from up there. It wasn't what an adviser was telling her to do, it's what she wanted to say about religious tolerance and...

BALDWIN: I have to ask, though, just what in the world is that light sitting next to the Queen? What is that light?

MORGAN: (Inaudible), aren't you, Brooke?

BALDWIN: I've just never -- I've never, ever seen it.

WEBBER: Not quite as nerve-wracking when we did the little private party for her birthday this year when she was as close to me as I am now, when were performing the new song, which we did (inaudible) -- say this now, because in fact, she heard it before. She came down to our house; we played it.

BALDWIN: You did the rehearsal (inaudible) --

(CROSSTALK)

BALDWIN: I want that answer in a moment.

MORGAN: This is great. This is the Queen now arriving (inaudible) Trafalgar Square. And the crowds are huge down there.

MORGAN: Did you see the flag up there? That's the royal standard, which only flies in all its splendor when the Queen is in residence, as she now is.

Famous flag, of course, (inaudible) when Diana died, there was all the controversy because the flag wasn't lowered, but it was never lowered for anybody. It's a flag that goes up when the Queen is at her home. (Inaudible) magnificent sight, (inaudible) as you said, medieval.

ARBITER: It is almost medieval, isn't it? And it's wonderful how the wind is catching it and showing it in its full glory. It doesn't happen very often. And a flag like that will only fly on major state occasions, which this is.

MORGAN: And even for Lord Lloyd Webber and to David Frost, even for you guys, who have been knighted, tapped (ph) and bestowed with great honor, to watch that a few feet behind us was quite something, wasn't it.

UNIDENTIFIED MALE: Absolutely great, indeed, (inaudible) extraordinary because we do it best.

MORGAN: We do, don't we?

UNIDENTIFIED MALE: We do.

BALDWIN: (Inaudible) let's go to Richard Quest, because I have to say, Richard, she's 86 years young. She had a rock concert at her home last night and she looks pretty good, unlike Queen Victoria, who needed help out of her carriage when she was celebrating her 60 years in 1897. The Queen looks very good.

QUEST: Indefatigable.

UNIDENTIFIED MALE: The stamina is fantastic.

MORGAN: (Inaudible).

(CROSSTALK)

QUEST: Here we have -- here we have the Queen getting out of the carriage, 86 years old and let's just watch.

Presentation from the household.

And the other carriage now arriving, as well. This is the last we will see of the Queen before she appears on the balcony about an hour or so before the fly past, the senior members of the royal family now going inside, the Duke and Duchess of Cambridge, Prince Harry, all the immediate members of the family directly in line of accession, and they will be the ones that will be on the balcony with Her Majesty.

MORGAN: We have got much more of the Queen's Diamond Jubilee, coming up.

(COMMERCIAL BREAK)

MORGAN: Good evening. I'm in Buckingham Palace where the official celebration of the Queen's Diamond Jubilee is winding down. Nothing can put a damper on the festivities. Not even the typically English weather. And we've got all the must-see moments.

(BEGIN VIDEO CLIP)

RICHARD QUEST, CNN INTERNATIONAL ANCHOR: Here we have the Queen getting out of the carriage, 86 years old. And let's just watch.

And the other carriage now arriving as well. This is the last we will see of the Queen before she appears on the balcony just about an hour or so before the fly pass. Other members, senior members of the royal family, now going inside. The Duke and Duchess of Cambridge. Prince Harry. All the immediate members of the family, directly in line of succession. And they will be the ones that will be on the balcony with Her Majesty.

And so, Brooke and Piers, that's the last we're going to see of the Queen for awhile. Probably taking off her shoes for a moment, having a cup of tea or whatever, while she gets ready for this amazing -- this amazing balcony appearance.

Here in Trafalgar Square the people are now going to start to move and they're going to start to try and get down the Mall as far as they can.

MORGAN: Just watching one of the last bands here at the palace. Watching one of the marching bands here in the palace. Take a look at this because you don't see this very often and will never see another Diamond Jubilee again. So soak in a bit of the atmosphere.

BROOKE BALDWIN, CNN ANCHOR: Just look at the crowds and you can just hear the band. You probably can still pick up the band over our microphone. But you can just feel it all around. All these people, thousands and thousands, perhaps a million. Surrounding Buckingham Palace as we're all waiting for the big moment. There's this huge balcony over our shoulders where we will see the Queen and her closest members of the royal family.

Here you go. And we're moments away from that. I want to bring in --

MORGAN: Look at that. These crowds. I mean, look at the scene. I mean, you just don't see this anywhere in the world.

BALDWIN: Well, we're waiting for the big wave. No kisses today. That was last year for the royal wedding.

MORGAN: How do you know? How do you know?

BALDWIN: Because her husband isn't here.

MORGAN: There might be other kissing on the balcony.

BALDWIN: Well, any --

MORGAN: There's always kissing on the royal balcony.

BALDWIN: We want to welcome in, Phillip Gregory, she is the best- selling author, her book is called "The Changeling."

Welcome back.

Thank you.

BALDWIN: We've got some better weather today and so appreciate that very much. We also have India Hicks and Katie Nicholl. And my question to you, Katie Nicholl, is just the significance of who we will be seeing in a matter of minutes out on that balcony. It's the closest of the royals. Yes?

KATIE NICHOLL, ROYAL EDITOR, THE MALL ON SUNDAY: Yes. Well, it should be, of course, the Duke of Edinburgh who's not here. The Duchess of Cornwall, the Prince of Wales, the Duchess of Cambridge, the Duke of Cambridge and Prince Harry. That would be it. Usually at the Queen's birthday parade, you get to see the whole plethora of the royal family. Not this time. The Golden Jubilee has been very different -- Diamond Jubilee seems different from the Golden Jubilee and the Silver Jubilee where you had a lot of members of the royal family up there.

This is a slimmed down appearance by the monarchy.

BALDWIN: Why?

NICHOLL: Because it's all about the line of succession. And the queen is sending out a very clear message by sending her heir and her other heir out there. And that is what this is all about.

BALDWIN: Ladies on the end, we have Katie Nicholl and India Hicks.

And, India, you were one of Princess Diana's five bridesmaids.

I want you to describe to us what in the world that feeling is like, standing on that balcony with all the -- the crowds of her people. She was the people's princess.

MORGAN: Out of interest, when you're all standing behind the curtains waiting to come out, what are you all doing?

But the footmen now will be beginning to open those glass doors and the -- the -- the rock stars, as you say, will be beginning to make their way to the front. And everybody just knows who's going to be out there. There will be a gentle push at the elbow.

But I mean, I must say, standing on that balcony and looking down at thousands upon thousands of upturned faces is extraordinary.

But what's so extraordinary is that it's very unusual to see peaceful crowds. So often we see rioting crowds or football hooligans or crowds protesting.

How often do we see thousands upon thousands of crowds --

MORGAN: -- you and I had a little disagreement about the merits of Queen Elizabeth in the standing of great monarchs. I believe she may well be the greatest, because I believe that, actually, after Diana's death, there was a possibility the monarchy could have come to an end.

And now you see these scenes and you think they've bought themselves at least another couple of generations, I would imagine.

But more important, the queen as a role model to the British people. Talk to me about that.

UNIDENTIFIED FEMALE: Well, again, I was thinking about our disagreement, as well. And I think if it hadn't been quite so wet and cold, I might...

(LAUGHTER)

UNIDENTIFIED FEMALE: I might have been...

BALDWIN: She blames the weather.

UNIDENTIFIED FEMALE: -- I might have been more generous and less Republican. But I have to say to you, I think that she's a fine -- a fine woman.

MORGAN: I believe the monarchy is stronger today than it was ten years ago. I see a real resurgence in this country. And that is tangible.

UNIDENTIFIED FEMALE: I agree with you. I think what we see today and last year with the wedding was a real return and interest in them as a family, and some turn in interest in them as a family, and some people that one could really admire and enjoy watching.

But I still think that the danger that they are in is that they are part of celebrity culture. I think the moment something goes wrong or somebody does something wrong, what we're going to see is the fickleness of public taste.

MORGAN: Katie Nicholl, you and I have worked in British media on and off over the last 20 years or so. The reality is that I think the temperature has changed. The relationship is much less confrontational, much more celebratory.

NICHOLL: Look who was in the carriage with the queen today.

MORGAN: Yes, Camilla Parker Bowles.

NICHOLL: You would not have -- if you want to see how things change, look at the carriage.

(CROSS TALK)

MORGAN: -- this day Camilla would be there, people would have thought you were mad.

NICHOLL: Piers, I think they've had to change. They've had to modernize. I know what Phillip was saying about celebrity. I see the risk of the Duke and Duchess of Cambridge being billed as A-list stars as when they came over to L.A. But actually, the monarchy needs to embrace the new age.

MORGAN: And later, the big moment her majesty, the queen, and the royal family on the balcony of Buckingham Palace.

(COMMERCIAL BREAK)

MORGAN: Welcome back to London. There it is, the empty balcony. Any moment, it will fill up with the most famous people probably on the planet, the queen, Prince Charles, Camilla Parker-Bowles, Prince William, Prince Harry. Catherine will be there.

We've been joined by Penny Junior, royal historian, author of the book "Prince William, the Man Who Will Be King."

Penny, you've covered this family for a long time, probably as long as I have. What do you think of all this?

PENNY JUNOR, AUTHOR: I think it's just a great endorsement for the royal family, isn't it?

MORGAN: I feel like they've been energized these last four days to a new level again. Let's talk about the historical context of this, because people I think have made a false assumption that the queen may one day abdicate. She might rush through William and all this kind of thing. That's not going to happen, is it?

JUNOR: No, totally false assumption. I mean, it's not the way hereditary monarchy works, as you know. It's the king is dead, long live the king. It's -- the reigning monarch must die for the next one to inherit. You simply cannot go leap-frogging one -- a character that you think is not going to be quite as popular as the next one.

Once you start doing that, why stick with the House of Windsor? And if you don't stick with the House of Windsor, you're into elections. And then the great thing about the monarchy is it is a unifying factor in the country. The minute you have politicians or elections, half the country wants the person that's on the throne or on the -- and the other half doesn't. So there's always discord.

MORGAN: Penny, on that historical point, it's very important I think that we don't allow the monarchy to get politicized.

JUNOR: Yes, I think it is. I mean it definitely would be unacceptable. But the monarchy has power. It has soft power. It has moral leadership. I think that is what is -- you know, William and Harry, the pair of them are fantastic leaders.

MORGAN: Yes, but my brother-in-law actually was one of the colonels in charge of training William and Harry at Sandhurst Royal Military Academy. So my sister used to have to welcome all the royals down, the Middletons, everybody else. What was fascinating was she said about both the boys, they were great soldiers, but they never wanted to be treated any differently than any of the others.

They never asked for any favors. They never got any favors. They are very grounded young men, I think. And that again is a great tribute to the royal family. They've managed to stay so relatively normal.

UNIDENTIFIED FEMALE: Actually, probably as much as anybody else, Prince Charles and the Duchess of Cornwall, because most boys of the age that they were would be absolutely thrown by the death of their mother. They would carry it with them as a sorrow all their lives. These boys obviously remember her very, very lovingly, have very fond memories of their childhood, but have managed to come through that.

MORGAN: India, you would know better than most, but Charles again -- I've seen much of their lives -- because after Diana died, those boys in their teenage years, it must have been a horrible blow to them. We have -- I think we have movement. We have movement.

UNIDENTIFIED FEMALE: They're coming out. The doors will open.

MORGAN: I've seen a twitching hand by the curtains, which is a --

BALDWIN: Bursting at the seams with your British pride.

MORGAN: I hope I'm seeing a twitching hand. Otherwise we're staring at an empty balcony. But there is movement.

BALDWIN: What do you think they've been doing these last minutes, kicking up their feet inside, taking in some --

MORGAN: They've been watching CNN. That's what they've been doing. Breaking live coverage around the world. We are -- I can definitely see something going on there.

UNIDENTIFIED FEMALE: My mother, who has spent a great deal of time with the queen and is very close to her, always says to know her is to admire her above all else. And I think that that today --

MORGAN: Yes, I think that's right. The queen I don't think wants everyone to love her. She wants them to respect her and to admire her and to respect the monarchy for what it provides.

UNIDENTIFIED FEMALE: I'm not sure that she actually wants them to respect her. I think it's the office.

BALDWIN: Listen to this crowd.

(CROSS TALK)

UNIDENTIFIED FEMALE: The door's open.

MORGAN: Something is going. There's the queen. The queen is coming out on the balcony. This is a great moment.

BALDWIN: There she is. Look at her. Alone at first. Wow.

(APPLAUSE)

MORGAN: Coming up from Buckingham Palace, the fly pass by the Royal Air Force and the feu de joie.

(COMMERCIAL BREAK)

MORGAN: The queen is coming out on the balcony. This is a great moment.

BALDWIN: There she is. Look at her. Alone at first. Wow.

(APPLAUSE)

(SINGING)

MORGAN: We're going to see the Royal Air Force Battle of Britain royal flight, featuring the Dakota, flanked by two King Air aircraft, the Lancaster Bomber, Spitfires and a Hurricane. Then there will be nine members of the Red Arrows team in T-1 jets. This will be pretty spectacular. We weren't expecting it because there's so much cloud and rain, but they're going for it. So the queen will get her fly-by.

(APPLAUSE)

MORGAN: And I'm so pleased for the queen because the fly-by is such an important part of these events.

BALDWIN: Here comes the feu de joie.

MORGAN: Wow, fireworks. Calm down, carry on.

(MUSIC)

(SINGING)

(APPLAUSE)

MORGAN: Fantastic scenes there as her majesty, the Queen, salutes a million of her subjects outside Buckingham Palace on the balcony. India, what did you think. Gut reaction to what we just saw?

HICKS: Immense pride to be sitting here.

MORGAN: It was emotional. Wasn't it?

HICKS: Very, very emotional. Imagine how she feels. How many times she's been on that balcony. She must be missing her mother and her sister, who were also incredibly close to her, but more so Prince Phillip right now, who we hope is warm and cozy in hospital watching it on television.

MORGAN: She looked really moved to me. She looked to me like she just took a moment, because she was slightly overwhelmed by the whole thing. I haven't seen that before.

Coming up, Queen Elizabeth marks 60 years on the throne and the nation celebrates.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Your majesty, on the historic occasion of your Diamond Jubilee, Michelle and I send you and all the members of the Commonwealth the heart felt congratulations of the American people. In war and in peace, in times of plenty and in times of hardship, the United States and the United Kingdom have shared a special relationship.

We stood tall and strong. And together, we face some of the greatest challenges this world has known. While many presidents and prime ministers have come and gone, your majesty's reign has endured.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP) QUEEN ELIZABETH II: Prince Philip and I want to take this opportunity to offer our special thanks and appreciation to all those who have had a hand in organizing these jubilee celebrations. It has been a massive challenge, and I'm sure that everyone who has enjoyed these festive occasions realizes how much work has been involved.

I hope that memories of all this year's happy events will brigthen our lives for many years to come.

I will continue to treasure and draw inspiration from the countless kindnesses shown to me in this country and throughout the Commonwealth.

Thank you all.

(END VIDEO TAPE)

MORGAN: Welcome back to Buckingham Palace in London, We've just witnessed a piece of history. Queen Elizabeth II celebrating her Diamond Jubilee, and the great finale there, of the balcony scene, with a very streamlined collection of the very greatest of the royals, right now.

A really moving, touching scene, and the public behind us still here, soldiering on through a bit of rain -- not much,actually. But the Queen looked really touched.

Great news is, Prince Philip is feeling much better, he says, and he's been watching the jubilee celebrations on television -- almost certainly CNN.

And the second thing happening is that Preisdent Obama has made a statement saying the Queen has set an example of resolve that will long be celebrated.

That's it from us here in London tonight. Thanks for joining.

I'm headed back to the States for a big interview with former Secretary of Defense Donald Rumsfeld. That's live, Wednesday night, 9:00 pm Eastern.